HOWDEN JOINERY GROUP PLC
2012 PRELIMINARY RESULTS
HIGHLIGHTS
Chief Executive, Matthew Ingle, said:
"Howdens has delivered another good set of results in 2012, making further progress on sales and profitability, and seeing strong cash flow.
"Our performance allows us to continue to pursue growth opportunities, as we open new depots and invest in our supply chain, manufacturing capability and new products, and address legacy issues.
"Our confidence in the long term strength and performance of the business is reflected in the Board's decision to recommend an increase in our dividend.
"We expect market conditions to continue to be challenging and we will continue to respond to the prevailing conditions we encounter."
Financial results
The information presented here relates to the 53 weeks to 29 December 2012 and the 52 weeks to 24 December 2011, unless otherwise stated. The inclusion of a 53rd week in 2012 (23 - 29 December) had no impact on revenue, as the business did not trade that week. It is estimated to have increased operating costs by around £5m, reducing 2012 operating profit and profit before tax by the same amount, and reducing profit after tax by around £4m.
Howden Joinery UK depot revenue increased by 4.0% to £872.5m (up 1.9% on same depot basis). Group revenue was £887.1m (2011: £853.8m);
Gross profit margin increased to 61.5% (2011: 59.7%);
Operating profit rose from £115.3m to £119.8m;
Profit before tax increased to £112.1m (2011: £111.0m), the net interest charge rising by £3.4m (due to a rise in the pensions finance expense);
Basic earnings per share increased from 13.5p to 14.0p;
Net cash of £96.4m at year-end (24 December 2011: £57.1m net cash);
Full year dividend for 2012 of 3p per share (2011: 0.5p).
Business developments
Investment in the future growth of the business continues:
- 20 new depots opened in 2012, bringing total to 529;
- capital expenditure totalled £24.2m;
- £16m investment in operating costs to support growth, including marketing initiatives and a revised regional and area structure, within which our depots are managed;
Leases on five legacy properties terminated in 2012, and two 'early releases' since then, bringing total remaining to 14.
Current trading
Howden Joinery UK depot revenue in the first two periods of 2013 rose by 17%, reflecting additional week of trading and timing of price increase - expect growth to normalise through coming periods;
Our outlook for the business remains unchanged, with the Group well placed to respond to the ongoing challenging conditions.
